International Venezuela, The Socialist Dystopia, v2: The region's worst humanitarian crisis in decades

[ShinkanPo]

Raising taxes is a good thing, that means they are willing to implement an unpopular measure to pay for stuff.

The issue is when they do their socialist stuff with borrowed money or a commodity boom. If Venezuela didnt had a drop of oil, rest assured they would be living far better off today.

I also read that Philippines import almost all its fuel, so its normal with rising oil prices.

Yeah hopefully the inflation will level out and the Chinese loans don't hit us as bad as the previous loans from the last 5 presidents.

 

[Rozko]

Sunday night my friend tells me that he is depressed because his dog died of starvation.

That was a big debbie downer for me, TBH i just cant anymore, im thinking about cutting him off its only a matter of time before he is gone.

Fuck that is terrible place to be in for both of you

 

[Arkain2K]

Good riddance.

They bought the PDVSA bonds at 70% discount, by the way.

 

[Rod1]

Good riddance.

GS were targetting some of the Venezuelan off-shore holdings, no doubt about it.

 

[Arkain2K]

ConocoPhillips to Recover $2 Billion in Settlement With Venezuela
By Alex Nussbaum and Lucia Kassai | August 20, 2018

ConocoPhillips said it’ll receive $2 billion in a settlement with Petroleos de Venezuela SA, ending a dispute that’s severely crippled Venezuela’s ability to export the crude oil central to its faltering economy.

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An international tribunal awarded the amount in April for asset seizures carried out in 2007 by late Venezuelan President Hugo Chavez. Under the agreement announced Monday, state-owned PDVSA will make initial payments of about $500 million within 90 days, with the balance paid quarterly over four and a half years, Conoco said in a statement.

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The $2 billion represents about a quarter of international reserves held at Venezuela’s central bank. PDVSA is behind on $6.1 billion of bond payments to creditors, and a judge in Delaware recently granted Canadian miner Crystallex the right to seize shares of U.S. refiner Citgo held by a Venezuelan parent, though the decision is being appealed.

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If Conoco doesn’t get its money, “the company can resume global enforcement actions" and “enforce the settlement agreement in all jurisdictions," spokesman Daren Beaudo said in an email. “The agreement was developed in good faith, and we believe we have fashioned terms that are reasonable yet fully enforceable."

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Conoco shares rose 1.5 percent to $70.84 at 1:35 p.m. in New York.

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Actions Suspended

Messages seeking comment from PDVSA weren’t immediately returned.

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Under the settlement, Houston-based Conoco said it will suspend legal actionsit had mounted worldwide, including in the Dutch Caribbean where about 16 percent of Venezuela’s crude exports are stored before shipping to the U.S., China and India.

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The pact comes days after Venezuela President Nicolas Maduro devalued the bolivar to trade nearly in line with the black market exchange rate in the latest attempt to deal with the country’s crippling economic woes. The legal war waged by Conoco, in addition to U.S. sanctions, has severely hampered PDVSA’s ability to export crude, the commodity that bankrolls Maduro’s regime.

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The settlement could potentially slow the decline in Venezuela’s oil production, Clearview Energy Partners LLC said in a note to clients. Output fell from 1.61 million barrels a day in January to 1.26 million last month, according to the International Energy Agency.

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For Conoco, the settlement could help the driller accelerate share buybacks -- a key demand of investors -- and fund increased capital spending on its drilling budget, Bloomberg Intelligence analysts Fernando Valle and Jonathan Mardini said in a Monday research note.

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The deal “brings Conoco one step closer to a full resolution for this settlement and removes some doubt around the timing and amount Conoco might recoup," Scott Hanold, an RBC Capital Markets analyst, said in a note Monday. “We are increasingly optimistic the company will successfully recover the full amount."

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Since May, the U.S. producer has relentlessly pursued PDVSA in courts across the globe, in a bid to force the Venezuelan oil giant to pay the arbitration award. Conoco filed attachment orders freezing assets in the Caribbean and is seeking to depose Citgo.

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Conoco was also seeking to intercept potential proceeds from a lawsuit filed by PDVSA in U.S. courts against oil traders who have allegedly defrauded the company.

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After the international tribunal in April awarded Conoco $2.04 billion, the company moved to take over oil facilities on the Caribbean islands of Bonaire, Curacao, St. Eustatius and Aruba. The moves created a hurdle for exports even as Venezuela’s domestic troubles cut into production at PDVSA, further hampering the country’s ability to raise cash and pay off its debts. Vessels were ordered to immediately pull away from Caribbean ports, creating a backlog of ships around Venezuela.

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China Shipments

The outage affected clients around the world. Fuel oil shipments to China, used to pay for oil loans with Venezuela, came to a stop. Thailand’s asphalt producer Tipco Asphalt PCL halted its refinery in Malaysia in part because of supply disruptions in Venezuela.

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Unable to load in the Caribbean, PDVSA instead loaded oil tankers via ship transfers off the coast, which partly alleviated the problem. The state-controlled company also boosted sales to the U.S. in smaller Aframax-size vessels, which limited it to smaller shipments but reduced its dependency on supertankers loaded in the Caribbean.

https://www.bloomberg.com/amp/news/...to-recover-2-billion-in-settlement-with-pdvsa

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[Arkain2K]

GS were targetting some of the Venezuelan off-shore holdings, no doubt about it.

There's already a very, very long line of claimants in court to get their billions of investments back after their companies were stolen decades ago by Hugo Chavez, and court-mandated seizures of Venezuela's foreign asset for compensation have already begun. Not to mention all the juicy bits being put up as collateral for those Russian and Chinese loans.

My guess is there will be scraps left for the bond holders when it gets to their turn.

 

[Cuauhtemoc]

Very disturbing who knows what is really happening in Venezuela. Its just so ridiculous for this to be allowed to happen in the 21st Century.

Its actually scary for anyone living in 3rd world country to observed this if you are currently experiencing inflation.

Do you think phillipines cuold be next?

 

[Arkain2K]

 

[Rod1]

Do you think phillipines cuold be next?

Doubtful, Chavez was a hardcore communist being fed shit by the Castro regime that wanted to make Venezuela in the image of Cuba.

Duterte is not a hardcore communist and his supporters are the Chinese who want to profit out of the Philippines so most likely Duterte will not mess around in the way Chavez did.

 

[ShinkanPo]

Do you think phillipines cuold be next?

Nah I dont think it would be another Venezuela but still the incompetence of the leaders here is just mind fucking.

Duterte has more comon sense than fucking Bus driver Maduro

 

[Rozko]

Do you think phillipines cuold be next?

Nicaragua would be the best bet. They are already murdering citizens as they protest.

 

[ShinkanPo]

@Rod1

I am sorry I already forgot I think you already told us about it monthd ago.

How does your friend pay for the internet or he just uses company computer?


He is an online game buddy right?

 

[Arkain2K]

Sunday night my friend tells me that he is depressed because his dog died of starvation.

That was a big debbie downer for me, TBH i just cant anymore, im thinking about cutting him off its only a matter of time before he is gone.

Damn, that's rough. It's only gonna get worse, I'm afraid.

My girlfriend's family go out last week and arrived here safely. Her nephews that just got here seemed shell shocked and have such bad social skills. For the last 2 years, they mostly just been in their family's house, avoiding the dangers. Feel so bad for them, to not have proper socialization. I worry about them being in public schools here, and potential bullies.

Good to hear they got out!

Whatever problem they might face here, it sure as hell beats starving to death or being treated like animals (or worse) in their neighboring countries.

 

[Rod1]

@Rod1

I am sorry I already forgot I think you already told us about it monthd ago.

How does your friend pay for the internet or he just uses company computer?


He is an online game buddy right?

He steals internet from a government office. He only plays at night because during day its clogged

 

[ShinkanPo]

He steals internet from a government office. He only plays at night because during day its clogged

Yikes

Anyway its so noble of you to help him sending money and stuff.


Back in 2013 My online buddy from Malaysia send me $100 when my house got damaged by a storm. He also invited me years later to stay at his resort house and his wife looks deliscious.

 

[GearSolidMetal]

https://www.businessinsider.com/venezuela-hyperinflation-in-pictures-2018-8

Venezuela.... the socialist paradise where everybody's a billionaire.

 

[Rod1]

Yikes

Anyway its so noble of you to help him sending money and stuff.


Back in 2013 My online buddy from Malaysia send me $100 when my house got damaged by a storm. He also invited me years later to stay at his resort house and his wife looks deliscious.

Thats quite nice of him.

Im still sending him money, but its outright depressing and hopeless, i have never seen a man turn to such hopelesness, its almost as if he is just waiting death out.

 

[Rod1]

If you guys want to add him in battle.net his tag is Touffe#1128.

He is like me though, he understands spoken english but speaks it poorly himself.

 

[Cuauhtemoc]

Raising taxes is a good thing, that means they are willing to implement an unpopular measure to pay for stuff.

The issue is when they do their socialist stuff with borrowed money or a commodity boom. If Venezuela didnt had a drop of oil, rest assured they would be living far better off today.

I also read that Philippines import almost all its fuel, so its normal with rising oil prices.

The weird thing about Venezuela is that they did their socialist stuff in the worst way possible. They didn't invest in oil extraction and refining at all, so they didn't just suffer from lower prices but they are unable to extract more oil. They also didn't even give basic health stuff to the citizens. Places like Cuba are fucked up but they at least invest in basic medicine. Venezuelans coming to Brazil are sick with every kind of weird preventable disease. They basically brought back measles to Brazil. Which means the government wasn't giving them vaccines.
Their entire economy was a lie, they had no industries outside of oil.

 

[Rod1]

@ShinkanPo

I talked to my buddy last night, i guess i was the one that was shook the most because i was chatting him over the messenger.

@Arkain2K

If you want to know someone in the inside you can find him in discord, he isnt as gloomy as i may be letting you guys believe, for someone under such hardships.

Pues Nada#8219